Finance Enterprise New Science Of Marketing_9 pptx

long way to avoiding off-strategy investments, also known as wasted money. Step 2. Identify Where in the Brand Experience Blueprint to Make Your Marketing Investment(s) ~ Create the marketing investment program (your experi- ment)—the marketing mix element or customer touch point. Language can have a powerful impact on the way marketing happens and how it’s perceived in your com- pany. The more you talk about marketing investments and actually follow up on them with financial rigor, the more likely EMM will gain followers outside of market- ing. ~ Develop a profile of the investment and the return on the mar- keting investment. Remember that you get what you measure, so if you’re not even making an educated guess at the investment profile for where you put marketing dollars, you’ll never get any smarter. ~ Develop the nonfinancial metrics that are likely leading indicators of marketing return. Because your marketing investment may require a significant investment before and during the actual return, the smarter you are at identifying other potential indicators of results, the bet- ter your decisions will be. Just as with stock market investments, what are those leading indicators for your marketing investments? Step 3. Implement the Process/System to Evaluate the Progress of Your Experiments before They’re Complete In other words, be able to answer the question “Are we selling more?” You’re condemned to staying in the dark until you put the right systems in place to manage your marketing investments. Sys- tems don’t have to be backed by million-dollar investments in infor- mation technology. The right process could consist of spreadsheets and meetings. OPTIMIZE MARKETING INVESTMENTS 209 CONCLUSION: A NEW DAY FOR MARKETING N ow that you’ve reached the end, don’t forget how you got here. Marketing’s bad habits are deeply ingrained; take the time to drag them out into the light. It’s a new day for mar- keting, and it begins with clearing out the dead wood and taking full advantage of what you already have. WHY IS NOW THE TIME TO BEGIN PRACTICING ENTERPRISE MARKETING MANAGEMENT? Simply put, the market forces of competition and innovation are fueling the evolution and adoption of scientific marketing practices, including the following key drivers: ~ Increasing market complexity. Market fragmenta- tion, channel and customer touch point proliferation, and globalization have combined to create a substan- tially more complex marketing environment. By help- ing to develop and implement standard, repeatable processes, marketing business applications help man- age the planning, execution, and measurement of mar- keting activities. 211 212 ENTERPRISE MARKETING MANAGEMENT ~ Accelerating demand for speed to market. As com- petitive pressures increase, the window of opportunity for new products and services is narrowing. As a result, marketers face increasing pressure to reduce product and market development cycles. Scientific marketing business applications support and foster collaboration, making marketing best practices and project manage- ment processes readily available to marketers and their internal and external service providers. ~ Growing need to capture marketing knowledge. Increasing dispersion and turnover of marketing person- nel put pressure on the ability of enterprises to actually use the intellectual capital they’ve built up over years. Customer relationship management (CRM) and enter- prise resource planning (ERP) applications aid in the execution and measurement of marketing efforts, but ongoing improvement requires an institutional memory to leverage successes and avoid programs with lackluster performance. In general, marketing remains an island in most enterprises today, disconnected from many of the core business processes and corresponding informa- tion flows—such as sales, service, manufacturing, and finance—limiting accessibility and collaboration, both within the enterprise and beyond the enterprise to criti- cal service providers. ~ Increasing availability of innovative marketing technologies. Early adopters and developers of scien- tific marketing applications and technologies are mostly using these capabilities to help manage the develop- ment of marketing-related content, automate work flow, and offer some integration with front- and back-office applications. But these early-stage applications are just the tip of the iceberg. The coming years will see the large-scale adoption and implementation of scientific marketing applications, which will give an enterprise the functionality necessary to plan, coordinate, and measure the business impact of their branding and marketing efforts. Enterprise marketing management (EMM) and the new science of marketing, as a set of business appli- cations and disciplines, will evolve to a holistic approach that addresses a broad array of marketer pain points, including: • Understanding customers, channel partners, and end consumers • Understanding markets • Brand management • Project/campaign management • Integrated support for selling channels, direct sales, and service operations • Evaluation, measurement, and knowledge capture from marketing programs ~ Escalating demand for marketing efficiency and effectiveness. Enterprises are under increasing pres- sure to deliver short-term profits while fostering endur- ing growth. With marketing expenditures reaching 15 to 35 percent of overall revenue, marketers face increasing scrutiny to be more accountable and to optimize return on marketing investment (ROMI) and return on mar- keting assets (ROMA). WHAT WILL IT TAKE FOR ENTERPRISES TO SUCCEED WITH THEIR MARKETING EFFORTS? The only way for marketers to succeed in the current environment is to embrace the scientific methods in this book and get their hands dirty with the business of selling more, more, more. To help guide you along the way, keep in mind the key principles listed in the summary table that follows: CONCLUSION: A NEW DAY FOR MARKETING 213 Summary Table Guiding Principles of Enterprise Marketing Management Part Guiding Principles From To 1. Marketing is a • Marketing as an art • Marketing as science science, not an art. I 2. Architect your brand. • Brands as identity campaigns • Brands as business 3. Plug marketing into • Disconnected and • Connected and enterprise. event driven outcome driven 4. Take ownership of • Interactions and • Sustain brand the brand experience transactions preference 5. Plug marketing into • Customer relationships • Brand experiences II CRM. 6. Cross-market to • Customer acquisition • Customer penetration cross-sell. focus focus 7. Use new media • Pulling awareness • Pulling activation for new action. levers levers 8. Restructure based • “Make-centered” • “Sell-centered” on brand experience. operations operations III 9. Measure investment • Expense and earn • Investment and performance. annuity 10. Optimize marketing • Static investment • Dynamic, optimized investments. decisions decisions TEAMFLY Team-Fly ® You’ve got a lot to tackle if you’re going to put enterprise mar- keting management into place in your business. You have to develop a deep understanding—a scientific understanding—of your market and your customers. Only then can you adequately develop your brand’s architecture and find the best way to communicate it to your customers to make them buy your product rather than just “feel good” about it. Every asset must be considered a marketing asset. Charle- magne, ruler of France, when conjuring up how he thought he would combat his enemies with limited resources, once uttered, “Let my armies be the rocks and trees and the birds in the sky.” So must you look beyond the traditional elements of the mar- keting mix to win in your markets. Let your marketers be every member of your sales force, every customer service rep, every e- mail, every invoice, every voice mail, every interaction with every customer at any time. Driving sales higher and outsmarting your competitors means that your brand can’t just live in traditional communication vehicles. Your brand must come alive as an experience for every customer. The longer you delay in understanding what that experience is today and how you should optimize it, the longer you delay moving to the next level of sales and profits. But, once you’ve developed that brand experience, you’ve sim- ply created the plan that needs to be executed. The market battle can’t be won with just a great strategy. You have to build the infra- structure to make it possible and you have to execute in the field to deliver real brand benefits, real value to your customers. Part of today’s challenge is that this brand experience happens largely by chance. Companies spend fortunes on developing new products, mak- ing sure that there are enough salespeople to service customers, investing in production capacity, and managing cash flow closely. No marketing mix detail is too picayune for marketing’s attention— whether it’s the process color of the sales brochures or the place- ment of the tag line on the package. Meanwhile, the total brand experience is not being actively managed by anyone. The bottom line: Marketing must do more and take complete ownership of the brand experience. Quite simply, no one else will. That’s to say nothing of the need to mobilize the rest of the CONCLUSION: A NEW DAY FOR MARKETING 215 company to evangelize the benefits that drive sales. Today, market- ing seems to have a hard time just getting its own story straight. Without investments in infrastructure, such as CRM systems that help marketing drive how customer service reps respond to specific customer interactions, the rest of the company doesn’t have a prayer of keeping to the message. Keeping to the message is just the start. You have to crawl before you walk. It may be nice to just get everyone on the same message, but the more advanced companies out there have to think about how to sell a portfolio of products and services, not just sell the same thing over and over again. Figuring out how to get a cus- tomer to cross-buy is marketing’s job, but it’s actually up to the rest of the company to make it happen. Unless you’re working in a new media environment, where the brand experience and the sales transaction happen in the same place, marketing has to rely on sales or customer service in most instances to ensure that cross-buying actually occurs. Rote memo- rization of “would you like fries with that?” can only go so far, so marketing has to raise the capabilities of everyone who interacts with customers if it hopes to cross-sell against the status quo. Once you’ve got your plans in place for taking ownership of the brand experience, you have to make sure that you’ve actually built the ability to manage it. Where are you going to place your invest- ments? Which ones are working and which ones are not? Surprisingly, things that we can all access for free about our own investment portfolios are nearly impossible to access for a com- pany’s marketing investments. What’s the risk of this investment? What’s the cash flow profile of this investment? How have we done in investments like this in the past? Admit it. At some time in your career, you’ve sat around a table of decision makers and had to make a leap of faith on marketing investments because you didn’t have the information infrastructure in place to treat marketing like an investment. You’ve essentially decided that you can live with such an enormous risk to your com- pany’s well-being. We have to admit it. The EMM road is the more difficult road to take. It brings strict accountability, requires real work to make marketing a legitimate discipline, forces you to take responsibility for the success of the entire enterprise, and makes you get out of 216 ENTERPRISE MARKETING MANAGEMENT your comfort zone and harness the assets of the company, not just manage vendors who tend to laugh a bit too loudly at your jokes. Now that you’ve gotten this far, it’s plain to see that marketing is indeed not an art, it is a science. If you’ve been looking for a way to reinvent marketing at your company, now you know what to do. And if you’re short on scientific marketing expertise and need some help putting enterprise marketing management to work for your company, help is just a click away at www.marketingscientists.com. What are you waiting for? CONCLUSION: A NEW DAY FOR MARKETING 217 [...]... blueprint used to guide, 196 financial profiling of, 192–93 interdependence of, 198 leading to profitable brand experience, 184–86 making within brand experience blueprint, 209 INDEX new rules of, 175 optimizing, 198, 208–9 profile, 13, 200, 209 program, 199–205, 209 strategy, 172 trade-offs, 183 marketing knowledge, growing need to capture, 212 marketing mix integrating new media into, 131–32 looking beyond... 70–71, 206–7 primary channel, element of brand experience, 67–68 process, element of business model, 155 Procter & Gamble, 86, 131 product development cycles, 212 product/service offerings, resulting from new media, 134–35 product usage, element of brand experience, 74–76 profiling tools, 71 profitability, 177 ProfitLogix, 207 pull strategy, 111 purchase, element of brand experience, 71–73 purchase cycle,... center of marketing, 14 clarity of benefits associated with, 19 communicating core beliefs and attitudes, 17 customer’s experience with, 64–66 dimensionalizing, 16 element of brand experience, 66–67 evaluating on sales, 14 expanding benefits of, 17 increasing effectiveness of, 43 maintaining control over perception of, 17 managing, 11–12 positioning through knowledge about customers, 8–9 power of, 14... Martha Stewart Everyday, 18 material resource planning, 10 measurement, in new media context, 133 media (traditional), element of brand experience, 67 messaging, features of American Express CMM, 56–57 messaging content, wasted effort of, 49 me-too versions, 22 metrics targets, element of business model, 155 Michael Graves, 37 Microsoft, 14, 75, 131, 135 minor advantage, as brand equity driver, 26, 27 M&M’s... 8 starting point for, 16 emotional benefits, 22 employee work intent, 51 The End of Advertising As We Know It (Zyman), 14 The End of Marketing As We Know It (Zyman), 3, 16 enterprise marketing management See EMM Enterprise Rent-A-Car, 103 ERP (enterprise resource planning), xiii, 115–16, 212 defined, 10 implementation of, 45 integrating CRM through, 104 lacking supply-chain information, 45 providing... 129–30 role to build customer database over time, 132 sources of new business models, 75 typical areas of failure, 8 marketing accounting information required for, 179 assuming greater responsibility for IT investments, 59 business processes of, 155 closing the gap with CRM implementations, 108 closing the sale before the deal, 112 connecting to finance, 50 connecting to human resources, 50–51 connecting... owning brand experience, 63–68, 215–16 people misplaced into task, 9 plugging into the enterprise, 57–59 primary purpose, 34 relating to finance, 203 reshaping company’s image, 92–94 return on spending, 50 science of, xiv–xv, 3 scientific method applied to, 5–6 in slow economy, 171, 175–76 strengthening left-brain aspects of, 13–14 understanding the market, 5 marketing assets, 175 positioning, 203 marketing... insights, 28–29 consumers, increasing power of, 151 conversion rate, 174 cost reduction, from new media, 134 cost -of- entry drivers, 23 CRM, 212 brand connected to, 101 closing the gap to marketing, 108 cross-selling and, 116–17 danger of trend, 14 defined, 10 differentiation required, 110 expectations unmet, 98 INDEX infatuation with, 116 integrating marketing science into, 110–13 integrating through... marketing programs communicating effectiveness of, 181–82 importance of synchronization among departments, 176 organizational culture to support, 180 marketing return See also marketing investment establishing leading indicators of, 201 leading indicators for, 209 marketing science, integrating into CRM, 110–13 marketing technologies, increasing availability of, 212–13 Mars, Forrest, 138 Mars, Frank, 138... building, 79–82 components of, 66–78 creating, 12 cycle, 15 defined, 64–66 destinations for, 81–82, 130 evaluating (proposing) options, 69–71 219 220 INDEX brand experience (Continued) extending from purchase, 132 holistic view of, 69 hypotheses, 89–91, 93 identifying (informing) need, 68–69 identifying stage of, 143 marketing asset, 99 marketing taking ownership of, 63–68 new media context for, 127 . purchase, 132 holistic view of, 69 hypotheses, 89 91 , 93 identifying (informing) need, 68– 69 identifying stage of, 143 marketing asset, 99 marketing taking ownership of, 63–68 new media context for,. 198 leading to profitable brand experience, 184–86 making within brand experience blueprint, 2 09 222 INDEX new rules of, 175 optimizing, 198 , 208 9 profile, 13, 200, 2 09 program, 199 –205, 2 09 strategy,. company, 43–44 marketing investment aligning with brand architecture, 194 95 assumptions in, 201–3 brand experience blueprint used to guide, 196 financial profiling of, 192 93 interdependence of, 198 leading